Gary Arthur Forrest of Flint Michigan is a stockbroker formerly registered with American Portfolios Financial Services Inc. who is the subject of a Notice and Order to Cease and Desist issued by the State of Michigan Department of Licensing and Regulatory Affairs Corporations Licensing and Securities Bureau supported by accusations that Forrest offered or effected the sale of Woodbridge securities at a time that those securities were not registered nor exempt from registration. In the Matter of: Gary A. Forest Complaint No. 333313 (Jan. 29, 2018).
According to the Order, between November 16, 2016 and July 21, 2017, a total of $573,004.00 worth of Woodbridge Mortgage Investment Fund notes had been sold by Forrest to investors EH, DJH, JRD, NLD, TC, EKW, SLW, GTZ, KFZ, RHO, LJO, DWM, DLM, JWD, JSD, HF, and BJT. Forrest purportedly generated $32,900.00 in commissions as a result of having marketed, offered and sold those Woodbridge notes.
American Portfolios Financial Services is liable for Forrest’s misconduct under common law agency principles, and as a “control person” pursuant to Section 20(a) of the Exchange Act of 1934, 15 U.S.C. §78(t).
The Order stated that twelve of the Woodbridge securities Forrest sold had not been covered on a federal level, registered, or otherwise exempt from registration; conduct violative of Michigan Securities ACT, MCL 451.2301. In addition, the Order stated that Forrest worked in the capacity of a Woodbridge agent even though he was not registered nor exempt from registration; conduct violative of Michigan Securities ACT, MCL 451.2402(1). The Order stated that a civil fine of $32,900.00 has been sought against Forrest by the Director of Michigan’s Corporations, Securities and Commercial Licensing Bureau.
Orders have additionally been issued by the Bureau against Woodbridge Mortgage Investment Fund 4; Woodbridge Mortgage Investment Fund 3A; and Woodbridge Mortgage Investment Fund 3, LLC for committing violations of the Michigan Securities Act, MCL 451.2501 and 451.2301. Moreover, Woodbridge has been alleged by the Securities and Exchange (SEC) Commission to be a Ponzi scheme where investors throughout the United States have been defrauded out of more than $1,000,000,000.00.
Forrest’s registration with American Portfolios Financial Services, Inc. was terminated on November 16, 2016.
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